Document background
A Private Placement Agreement is essential for companies seeking to raise capital through private offerings in India. This document is specifically used when a company wishes to issue securities to a select group of investors without making a public offering, following the regulatory framework established by Section 42 of the Companies Act, 2013, and SEBI guidelines. The agreement outlines the terms of investment, subscription process, representations and warranties, conditions precedent, and post-investment rights and obligations. It includes critical components such as investor qualifications, compliance requirements, and necessary disclosures mandated by Indian law. The document is particularly relevant in the context of startup funding, growth capital, and strategic investments, where companies prefer private fundraising over public markets.
